THE |
ALGER | MEETING THE CHALLENGE
FUND | OF INVESTING
ALGER GROWTH PORTFOLIO
ALGER SMALL CAPITALIZATION PORTFOLIO
ALGER BALANCED PORTFOLIO
ALGER MIDCAP GROWTH PORTFOLIO
ALGER CAPITAL APPRECIATION PORTFOLIO
ALGER MONEY MARKET PORTFOLIO
SEMI-ANNUAL | April 30, 1996
REPORT | (Unaudited)
FELLOW SHAREHOLDERS: June 18, 1996
A YEAR-TO-DATE REVIEW
The first six months of the fiscal year have been extremely challenging and
volatile. On more than one occasion, we have experienced the financial markets'
equivalent of wind-shear. Despite the volatility, most of the major market
indices are significantly higher than they were at the beginning of the year
with NASDAQ leading the way, up 13.2% through the end of April. On the other
hand, the bond market has been exceedingly weak. The reason for market
conditions so far this year has been a dramatic change in perception about the
nature of the economy and a variety of unrelated, but perplexing economic
events.
As 1996 began, the conventional wisdom in the market was that the economy
was extremely weak, and consequently would require a series of Federal Reserve
actions to lower short-term rates in order to avoid a possible recession. This
view was predicated on the extremely lackluster economic conditions that existed
during the Christmas sale season. Retail sales, by all accounts, were anywhere
from slow to abysmal. As a result, the GDP, calculated by the new chain-linked
method, grew only 0.5% in the fourth quarter. The Federal Reserve responded
aggressively by lowering both the Fed Funds rate and the discount rate in
February, after having lowered rates 1/4 of one point on December 19. On January
1, the thirty-year long-bond was trading at 5.96% and the stock market's concern
was that earnings would be lower than expected. To a certain degree this
forecast proved accurate. Certain parts of the economy, specifically
semiconductors and other technology products, did pre-announce disappointing
results for the first quarter, continuing a trend which began in the fourth
quarter of 1995. Consequently, many stocks performed very poorly at the end of
the first quarter. Interestingly, the first quarter began with a surge in the
Dow and a lag in the smaller companies, presumably because the larger companies
represented a safe haven against weak economic conditions.
Whatever weakness existed in the economy when the year began was further
exacerbated by severe snow storms in January and a partial shutdown of the
Federal Government. Along the way, several events occurred that radically
altered the investment landscape. First, two key commodities - grains and
petroleum products - experienced accelerating price increases due in large part
to the weather which prevailed at the beginning of the year. Secondly, on March
10 the Labor Department announced that the economy created 705,000 new jobs in
February, a dramatic and unexpected surge in new job formation. This was an
enormous increase, even netted against the drop of 188,000 in January. These
data have been subsequently restated, but the net gain for the two months is
about the same.
These changes threw the bond market into a panic and temporarily altered
the outlook of the stock market. The view about economic events began to shift
at this point and people began to consider that:
a) The economy was stronger than they originally thought;
b) Inflation was becoming a problem; and
c) The Fed would no longer lower rates.
In early May, it was announced that the GDP in the first quarter had grown
2.8% (since restated to 2.3%). This completed the 180-degree turn in investors'
perception. By this time the bond market had dropped dramatically.
<PAGE>
LOOKING AHEAD
Throughout this period, we have been unwilling to accept the view,
prevalent in January and February, that the economy was heading toward a
recession. We are also not willing to accept the currently prevailing view that
the economy is extremely robust and will lead to exaggerated inflation followed
by increases in short-term interest rates sometime this summer.
There is, admittedly, some evidence to point to a stronger economy than we
had anticipated. Housing data, for example, remains robust despite the increase
in mortgage rates. Additionally, consumer spending and average income figures
were both up in April. Despite this strong economic data, there are still plenty
of signs that the economy is not on a tear. Durable goods, for example, fell in
April and gold, a good indicator of inflation, is flat on the year, having been
up over $400 an ounce earlier.
We also do not see any data which would lead to concerns of a higher level
of inflation. If anything, there has been a drop in commodity prices recently,
and other industrial measures do not show much stress in the economy.
It is important to note, however, that when the bond market was at its
worst, the stock market remained undervalued relative to the bond market. At the
same time, the stock market has also remained undervalued relative to short-term
interest rates. In all likelihood, this is why the stock market has remained
relatively strong and did not respond to the rapid rise in rates.
In conclusion, although the economy looks confusing, we see no reason to be
less than optimistic about the financial markets. We believe that the market is
going to remain challenging for the rest of the year, oscillating between fear
of recession and fear of inflation, with periods of intense sector rotations.
Against this background, we expect that fundamental analysis will win out.
Respectfully submitted,
/s/David D. Alger
David D. Alger
President
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Alger Growth Portfolio:
Schedule of Investments..............................4-5
Financial Highlights.................................6
Alger Small Capitalization Portfolio:
Schedule of Investments..............................7-8
Financial Highlights.................................9
Alger Balanced Portfolio:
Schedule of Investments..............................10-11
Financial Highlights.................................12
Alger MidCap Growth Portfolio:
Schedule of Investments..............................13-14
Financial Highlights.................................15
Alger Capital Appreciation Portfolio:
Schedule of Investments..............................16-17
Financial Highlights.................................18
Alger Money Market Portfolio:
Schedule of Investments..............................19-20
Financial Highlights.................................21
Statements of Assets and Liabilities.......................................22
Statements of Operations...................................................23
Statement of Cash Flows (Alger Capital Appreciation Portfolio).............24
Statements of Changes in Net Assets........................................25
Notes to Financial Statements..............................................26-29
<PAGE>
THE ALGER FUND -4-
ALGER GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1996
COMMON STOCKS--91.6% SHARES VALUE
------ -----
AEROSPACE--2.0%
The Boeing Company ............................. 40,500 $ 3,326,063
Sundstrand Corp. ............................... 37,500 1,378,125
-----------
4,704,188
-----------
ALUMINUM--.5%
Aluminum Co. of America ........................ 18,500 1,153,937
-----------
APPAREL--1.1%
Tommy Hilfiger Corporation* .................... 57,000 2,593,500
-----------
BIO-TECHNOLOGY--3.0%
Amgen Inc.* .................................... 36,300 2,087,250
Biochem Pharma Inc.*............................ 108,200 4,923,100
-----------
7,010,350
-----------
BUILDING & CONSTRUCTION--1.3%
Clayton Homes, Inc.............................. 161,625 2,990,063
-----------
CHEMICALS--1.0%
Monsanto Co. ................................... 16,100 2,439,150
-----------
COMMUNICATIONS--8.3%
America Online Inc.* ........................... 50,000 3,200,000
Cascade Communications Corp.* .................. 12,300 1,233,075
Glenayre Technologies Inc.* .................... 62,000 2,883,000
LCI International Inc.* ........................ 25,000 650,000
Tellabs, Inc.* ................................. 53,500 2,955,875
U.S. Robotics Corp.* ........................... 23,000 3,599,500
WorldCom Inc.*.................................. 110,800 5,207,600
-----------
19,729,050
-----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--9.9%
Bay Networks Inc.* ............................. 91,500 2,882,250
Cabletron Systems, Inc.* ....................... 15,800 1,190,925
Cisco Systems, Inc.*............................ 137,800 7,148,375
Digital Equipment Corporation* ................. 66,500 3,973,375
Seagate Technology* ............................ 61,500 3,567,000
3 Com Corp.* ................................... 99,200 4,575,600
-----------
23,337,525
-----------
COMPUTER SOFTWARE--1.5%
Informix Corporation*........................... 135,500 3,573,813
-----------
COMPUTER
TECHNOLOGY--1.2%
Adaptec, Inc.* ................................. 48,700 2,800,250
-----------
CONSUMER PRODUCTS--1.0%
Colgate Palmolive Co. .......................... 28,700 2,199,138
Nike, Inc., Cl. B .............................. 2,400 210,000
-----------
2,409,138
-----------
DEFENSE--3.5%
Lockheed Martin Corp. .......................... 28,789 2,321,113
McDonnell Douglas Corporation .................. 62,000 5,983,000
-----------
8,304,113
-----------
FINANCIAL SERVICES--11.8%
Chase Manhattan Corp. .......................... 88,000 6,061,000
First Data Corporation ......................... 91,412 6,947,312
GreenTree Financial Corp........................ 100,000 3,375,000
MBNA Corp....................................... 115,500 3,277,312
Merrill Lynch & Co., Inc. ...................... 65,000 3,924,375
Money Store, Inc. .............................. 85,200 2,151,300
Schwab (Charles) Corporation (The) ............. 90,600 2,219,700
-----------
27,955,999
-----------
HEALTHCARE--9.1%
Boston Scientific Corporation* ................. 42,000 1,811,250
Columbia/HCA Healthcare
Corporation................................... 100,500 5,339,063
Guidant Corp. .................................. 42,300 2,374,088
Johnson & Johnson .............................. 11,404 1,054,870
Lilly (Eli) Co. ................................ 56,400 3,327,600
Merck & Co., Inc. .............................. 67,000 4,053,500
SmithKline Beecham PLC ADS ..................... 67,000 3,618,000
-----------
21,578,371
-----------
HEALTH MAINTENANCE
ORGANIZATIONS--6.0%
Healthsource, Inc.*............................. 129,400 4,415,775
Oxford Health Plans, Inc.*...................... 134,000 6,767,000
United Healthcare Corporation .................. 51,500 3,012,750
-----------
14,195,525
-----------
INSURANCE--5.1%
American International Group, Inc. ............. 63,100 5,765,762
Travelers/Aetna Property Casualty
Corp., Cl. A.* ............................... 60,000 1,657,500
Travelers Group Inc. ........................... 74,900 4,606,350
-----------
12,029,612
-----------
<PAGE>
LEISURE &
ENTERTAINMENT--.8%
Mirage Resorts, Incorporated* .................. 38,000 1,990,250
-----------
MACHINERY--.9%
Case Corp. ..................................... 43,800 2,211,900
-----------
MEDICAL DEVICES--.2%
Summit Technology Inc.* ........................ 24,150 431,680
-----------
MEDICAL SERVICES--.8%
Cardinal Health, Inc. .......................... 5,700 357,675
Medtronic, Inc. ................................ 27,000 1,434,375
-----------
1,792,050
-----------
<PAGE>
THE ALGER FUND -5-
ALGER GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1996
COMMON STOCKS--(CONT.) SHARES VALUE
------ -----
PHARMACEUTICALS--1.0%
Pfizer Inc. .................................... 33,500 $ 2,307,313
-----------
RESTAURANTS &
LODGING--4.8%
Boston Chicken, Inc.* .......................... 30,000 960,000
Lone Star Steakhouse &
Saloon, Inc.* 173,900 7,195,112
Outback Steakhouse, Inc.* ...................... 77,500 3,109,688
-----------
11,264,800
-----------
RETAILING--8.6%
Cintas Corp. ................................... 15,000 806,250
The Gap, Inc.................................... 163,000 4,910,375
General Nutrition Companies, Inc.* ............. 100,000 1,950,000
Gucci Group N.V.* .............................. 70,500 3,833,437
OfficeMax, Inc.*................................ 247,700 6,502,125
Viking Office Products, Inc.* .................. 39,000 2,315,625
-----------
20,317,812
-----------
SEMI-CONDUCTORS--5.5%
Altera Corporation* ............................ 56,900 3,001,475
Linear Technology Corporation .................. 75,000 2,578,125
Maxim Integrated Products, Inc.*. 107,600 3,685,300
Xilinx, Inc.*................................... 105,000 3,871,875
-----------
13,136,775
-----------
MISCELLANEOUS--2.7%
Planning Sciences International Corp.* ......... 6,000 144,750
Service Corporation International .............. 116,300 6,178,437
-----------
6,323,187
-----------
Total Common Stocks
(Cost $179,274,896) .......................... 216,580,351
-----------
WARRANTS WARRANTS VALUE
-------- -----
MANUFACTURING
Windmere Corp.,
expires 1/19/98 (Cost $61) ................... 81 $ 243
-----------
SHORT-TERM CORPORATE PRINCIPAL
NOTES--8.1% AMOUNT
---------
Ameritech Corp.,
5.22%, 5/7/96................................. $8,500,000 8,492,606
Bridgestone/Firestone, Inc.,
5.35%, 5/2/96 ................................ 700,000 699,895
Dynamic Funding, Corp.,
5.35%, 5/7/96 ................................ 1,500,000 1,498,662
Lucent Technologies, Inc.,
5.27%, 5/9/96 ................................ 750,000 749,121
Philip Morris Cos, Inc.,
5.20%, 5/7/96 ................................ 6,350,000 6,344,495
Triple-A One Funding, Corp.,
5.33%, 5/1/96(a) ............................. 1,300,000 1,300,000
------------
Total Short-Term Corporate Notes
(Cost $19,084,779) ........................... 19,084,779
------------
Total Investments
(Cost $198,359,736)(b) ....................... 99.7% 235,665,373
Other Assets in
Excess of Liabilities ........................ .3 744,980
----- ------------
Net Assets ..................................... 100.0% $236,410,353
===== ============
*Non-income producing security.
(a)Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity only to qualified institutional buyers.
(b)At April 30, 1996, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $198,359,736, amounted to $37,305,637
which consisted of aggregate gross unrealized appreciation of $40,147,784 and
aggregate gross unrealized depreciation of $2,842,147.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -6-
ALGER GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the period (i)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED -------------------------------------------------------------
APRIL 30, 1996(II) 1995 1994 1993 1992 1991
------------------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period....................... $ 9.38 $ 6.97 $ 7.43 $ 5.76 $ 5.77 $ 4.25
-------- -------- -------- -------- ------- -------
Net investment income (loss)....... (.04)(iii) (.02) (.07)(iii) (.02) (.06)(iii) (.02)
Net realized and unrealized
gain (loss) on investments...... .58 2.59 .35 1.70 .61 1.86
-------- -------- -------- -------- ------- -------
Total from investment
operations...................... .54 2.57 .28 1.68 .55 1.84
Distributions from net realized
gains........................... (.59) (.16) (.74) (.01) (.56) (.32)
-------- -------- -------- -------- ------- -------
Net asset value, end of period..... $ 9.33 $ 9.38 $ 6.97 $ 7.43 $ 5.76 $ 5.77
Total Return (iv).................. 6.3% 37.8% 4.1% 29.2% 9.7% 45.8%
======== ======== ======== ======== ======= =======
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)............... $236,410 $154,284 $ 76,390 $ 37,988 $19,379 $10,213
======== ======== ======== ======== ======= =======
Ratio of expenses to average
net assets.................... 2.08%(v) 2.09%(v) 2.20% 2.20% 2.32% 2.70%
======== ======== ======== ======== ======= =======
Ratio of net investment income
(loss) to average net assets.. (.91%) (1.03%) (1.01%) (1.16%) (1.07%) (1.06%)
======== ======== ======== ======== ======= =======
Portfolio Turnover Rate......... 48.80% 118.16% 103.86% 108.54% 69.28% 76.06%
======== ======== ======== ======== ======= =======
Average Commission
Rate Paid..................... $ .0731
========
</TABLE>
(i) Per share data has been adjusted to reflect the effect of a 3 for 1
stock split which occurred September 27, 1995.
(ii) Unaudited. Ratios have been annualized; total return has not been
annualized.
(iii) Amount was computed based on average shares outstanding
during the period.
(iv) Does not reflect contingent deferred sales charge.
(v) Reflects total expenses, including fees offset by earnings credits.
The expense ratio net of earnings credits would have been 2.07% for
both the six months ended April 30, 1996 and for the year ended
October 31, 1995.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -7-
ALGER SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1996
COMMON STOCKS--96.9% SHARES VALUE
------ -----
AGRICULTURE--.7%
Delta & Pine Land Co. .......................... 83,850 $ 3,741,806
-----------
ALUMINUM--.5%
Reynolds Metals Co. ............................ 47,100 2,531,625
-----------
APPAREL--2.9%
Gymboree Corp.* ................................ 110,000 2,846,250
Nautica Enterprises, Inc.* ..................... 89,500 4,161,750
St. John Knits, Inc. ........................... 61,800 3,669,375
Tommy Hilfiger Corporation* .................... 117,700 5,355,350
-----------
16,032,725
-----------
BIO-TECHNOLOGY--8.9%
Biochem Pharma Inc.* ........................... 290,300 13,208,650
CellPro Incorporated* .......................... 178,700 2,903,875
Centocor, Inc.* ................................ 112,100 4,484,000
Cygnus, Inc.* .................................. 148,000 3,163,500
Cytotherapeutics, Inc.* ........................ 169,800 2,504,550
Ergo Science Corp.* ............................ 185,500 3,849,125
Genome Therapeutics Corp.* ..................... 18,000 177,750
Genzyme Corp.--
Tissue Repair Division* ...................... 117,500 1,615,625
Guilford Pharmaceuticals Inc.* ................. 182,200 4,646,100
IDEC Pharmaceuticals Corp.* .................... 161,500 4,663,313
INCYTE Pharmaceuticals, Inc.* ................. 85,000 2,730,625
Liposome Company Inc.* ......................... 77,000 1,886,500
Oncogene Science, Inc.* ........................ 100,000 1,012,500
Sepracor Inc.* ................................. 170,000 2,380,000
-----------
49,226,113
-----------
COMMUNICATIONS--12.6%
America Online Inc.* ........................... 108,700 6,956,800
Ascend Communications, Inc.* ................... 281,800 17,330,700
Chancellor Broadcasting Co. Cl. A.* 61,500 1,568,250
Clear Channel
Communications Inc.* ......................... 50,000 3,387,500
CompuServe Corp.* .............................. 105,000 2,992,500
DSP Communications, Inc.* ...................... 50,000 1,987,500
Glenayre Technologies Inc.* .................... 292,225 13,588,462
LCI International Inc.* ........................ 50,000 1,300,000
Tellabs, Inc.* ................................. 200,300 11,066,575
U.S. Robotics Corp.* ........................... 58,500 9,155,250
-----------
69,333,537
-----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--9.1%
Bay Networks Inc.* ............................. 335,300 10,561,950
Cisco Systems, Inc.* ........................... 50,000 2,593,750
Digital Equipment Corporation* ................. 120,000 7,170,000
Network Appliance Inc.* ........................ 228,500 7,312,000
Seagate Technology* ............................ 135,300 7,847,400
Teltrend, Inc.* ................................ 45,000 2,221,875
3 Com Corp.* ................................... 280,000 12,915,000
-----------
50,621,975
-----------
COMPUTER SERVICES--1.6%
HBO & Company .................................. 74,000 8,787,500
-----------
COMPUTER SOFTWARE--7.1%
Compuware Corp.* ............................... 140,000 3,990,000
Electronics For Imaging Inc.* ................. 205,000 12,505,000
EPIC Design Technology, Inc.* ................. 71,000 2,431,750
Inference Corp. Cl. A.* ........................ 156,000 2,827,500
Informix Corporation* .......................... 250,400 6,604,300
INSO Corp.* .................................... 40,000 2,170,000
PeopleSoft Inc.* ............................... 72,500 4,567,500
Softkey International Inc.* .................... 140,700 3,939,600
-----------
39,035,650
-----------
COMPUTER
TECHNOLOGY--3.6%
Adaptec, Inc.* ................................. 131,100 7,538,250
C.P. Clare Corporation* ........................ 156,900 3,314,512
Citrix Systems, Inc.* .......................... 50,000 3,900,000
FORE Systems, Inc.* ............................ 45,000 3,555,000
Verity Inc.* ................................... 25,000 859,375
VideoServer, Inc.* ............................. 23,500 787,250
-----------
19,954,387
-----------
CONSUMER PRODUCTS--.5%
Oakley, Inc.* .................................. 70,000 3,220,000
-----------
FINANCIAL SERVICES--3.9%
Advanta Corp., Class B ......................... 46,100 2,310,763
Money Store, Inc. .............................. 345,000 8,711,250
Oxford Resources Corp. Cl. A.* ................. 85,000 2,507,500
Schwab (Charles)
Corporation (The) ............................ 331,100 8,111,950
-----------
21,641,463
-----------
HEALTHCARE--1.5%
Access Health, Inc.* ........................... 37,500 2,076,563
CNS Inc.* ...................................... 99,000 1,955,250
Orthodontic Centers Of
America Inc.* ................................ 20,000 790,000
Pharmacopeia Inc.* ............................. 10,000 268,750
Physicians Sales & Service, Inc.* .............. 110,000 2,970,000
-----------
8,060,563
-----------
<PAGE>
HEALTH MAINTENANCE
ORGANIZATIONS--4.7%
Healthsource, Inc.* ............................ 347,600 11,861,850
Oxford Health Plans, Inc.* ..................... 276,400 13,958,200
-----------
25,820,050
-----------
INDUSTRIAL EQUIPMENT--.2%
Waters Corp.* .................................. 30,000 836,250
-----------
LEISURE &
ENTERTAINMENT--.1%
Cinar Films, Inc. Cl. B.* ...................... 10,000 172,500
-----------
<PAGE>
THE ALGER FUND -8-
ALGER SMALL CAPITALIZATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1996
COMMON STOCKS--(CONT.) ......................... SHARES VALUE
------ -----
MANUFACTURING--.3%
Landec Corporation* ............................ 100,000 $ 1,900,000
-----------
MEDICAL DEVICES--10.4%
Conceptus, Inc.* ............................... 133,000 2,626,750
ESC Medical Systems Ltd.* ...................... 100,000 4,400,000
Fuisz Technologies Ltd.* ....................... 195,500 4,985,250
Heartport, Inc.* ............................... 79,500 2,842,125
Hologic, Inc.* ................................. 218,400 6,442,800
IDEXX Laboratories Inc.* ....................... 70,000 3,115,000
Intercardia, Inc.* ............................. 50,000 1,125,000
Metra Biosystems, Inc.* ........................ 105,000 1,417,500
Neuromedical Systems, Inc.* .................... 389,400 8,518,125
Perclose, Inc.* ................................ 75,000 1,537,500
STERIS Corp.* .................................. 157,000 5,102,500
Summit Technology Inc.* ........................ 53,850 962,569
Target Therapeutics, Inc.* ..................... 173,400 9,406,950
VISX, Incorporated* ............................ 143,500 4,914,875
-----------
57,396,944
-----------
MEDICAL SERVICES--4.7%
CompDent Corp.* ................................ 70,000 3,097,500
Health Management
Associates, Inc. Cl. A.* ..................... 58,900 1,884,800
Lincare Holdings, Inc.* ........................ 148,200 5,752,087
Omnicare, Inc. ................................. 111.800 6,708,000
PhyCor Inc.* ................................... 126,125 6,211,656
Quintiles Transnational Corp.* ................. 33,500 2,453,875
-----------
26,107,918
-----------
PAPER PACKAGING &
FOREST PRODUCTS--.2%
Sealed Air Corp.* .............................. 33,500 1,185,063
-----------
POLLUTION CONTROL--2.9%
United Waste Systems, Inc.* .................... 159,000 8,745,000
USA Waste Service, Inc.* ....................... 275,100 7,152,600
-----------
15,897,600
-----------
RESTAURANTS & LODGING--3.9%
Boston Chicken, Inc.* .......................... 150,000 4,800,000
Lone Star Steakhouse &
Saloon, Inc.* ................................ 303,400 12,553,175
Outback Steakhouse, Inc.* ...................... 109,400 4,389,675
-----------
21,742,850
-----------
RETAILING--7.6%
The Gap, Inc. .................................. 160,000 4,820,000
Garden Ridge Corp.* ............................ 43,500 2,414,250
General Nutrition Companies, Inc.* ............. 327,700 6,390,150
Gucci Group N.V.* .............................. 133,000 7,231,875
Home Shopping Network Inc.* .................... 133,000 1,562,750
OfficeMax, Inc.* ............................... 262,500 6,890,625
Tiffany & Co. .................................. 30,000 1,957,500
Viking Office Products, Inc.* .................. 179,200 10,640,000
-----------
41,907,150
-----------
SEMI-CONDUCTORS--8.2%
Altera Corporation* ............................ 153,900 8,118,225
Linear Technology Corporation .................. 190,500 6,548,437
Maxim Integrated
Products, Inc.* .............................. 290,200 9,939,350
Microchip Technology
Incorporated* ................................ 301,500 7,688,250
Xilinx, Inc.* .................................. 353,400 13,031,625
-----------
45,325,887
-----------
MISCELLANEOUS--.8%
Loewen Group Inc. .............................. 30,000 896,250
Rural/Metro Corporation* ....................... 112,500 3,332,813
-----------
4,229,063
-----------
Total Common Stocks
(Cost $368,855,720) .......................... 534,708,619
-----------
SHORT-TERM PRINCIPAL
CORPORATE NOTES--2.8% AMOUNT
-----------
Dynamic Funding Corp.,
5.35%, 5/7/96................................. $1,900,000 1,898,305
Industrial Funding Corp.,
5.30%, 5/6/96(a) ............................. 900,000 899,337
Lucent Technologies, Inc.,
5.27%, 5/9/96 ................................ 3,900,000 3,895,433
Pepsico Inc.,
5.25%, 5/8/96 ................................ 5,900,000 5,893,977
Philip Morris Cos. Inc.,
5.20%, 5/7/96 ................................ 3,000,000 2,997,400
-----------
Total Short-Term Corporate Notes
(Cost $15,584,452) ........................... 15,584,452
-----------
Total Investments
(Cost $384,440,172)(a) ....................... 99.7% 550,293,071
Other Assets in Excess
of Liabilities ............................... .3 1,536,908
----- ------------
Net Assets ..................................... 100.0% $551,829,979
===== ============
*Non-income producing security.
(a)At April 30, 1996, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $384,440,172, amounted to
$165,852,899 which consisted of aggregate gross unrealized appreciation of
$170,331,910 and aggregate gross unrealized depreciation of $4,479,011.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -9-
ALGER SMALL CAPITALIZATION PORTFOLIO
Financial Highlights
For a share outstanding throughout the period (i)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED ---------------------------------------------------------------
APRIL 30, 1996(II) 1995 1994 1993 1992 1991
------------------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period....................... $ 11.13 $ 7.62 $ 8.65 $ 6.88 $ 6.97 $ 4.33
-------- -------- -------- -------- -------- ---------
Net investment income (loss)....... (.05) (.13) (.09) (.08) (.11)(iii) (.03)
-------- -------- -------- -------- -------- ---------
Net realized and unrealized
gain( loss) on investments...... 1.20 3.64 (.02) 1.85 .37 2.76
-------- -------- -------- -------- -------- ---------
Total from investment
operations...................... 1.15 3.51 (.11) 1.77 .26 2.73
Distributions from net realized
gains........................... (.60) -- (.92) -- (.35) (.09)
-------- -------- -------- -------- -------- ---------
Net asset value, end of period..... $ 11.68 $ 11.13 $ 7.62 $ 8.65 $ 6.88 $ 6.97
======== ======== ======== ======== ======== =========
Total Return (iv).................. 11.0% 46.2% (1.1%) 25.8% 3.4% 63.7%
======== ======== ======== ======== ======== =========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)............... $551,830 $463,718 $294,890 $300,108 $182,432 $ 61,273
======== ======== ======== ======== ======== =========
Ratio of expenses to average
net assets.................... 2.13%(v) 2.11%(v) 2.18% 2.13% 2.17% 2.23%
======== ======== ======== ======== ======== =========
Ratio of net investment income
(loss) to average net assets.. (1.79%) (1.75%) (1.51%) (1.52%) (1.64%) (1.37%)
======== ======== ======== ======== ======== =========
Portfolio Turnover Rate.......... 68.54% 97.37% 131.86% 148.49% 121.00% 171.04%
======== ======== ======== ======== ======== =========
Average Commission
Rate Paid..................... $ .0665
========
</TABLE>
(i)Per share data has been adjusted to reflect the effect of a 3 for 1 stock
split which occurred September 27, 1995. (ii) Unaudited. Ratios have been
annualized; total return has not been annualized.
(iii)Amount was computed based on average shares outstanding during the period.
(iv)Does not reflect contingent deferred sales charge.
(v)Reflects total expenses, including fees offset by earnings credits. The
expense ratio net of earnings credits would have been 2.12% for the six
months ended April 30, 1996 and 2.11% for the year ended October 31, 1995.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -10-
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1996
COMMON STOCKS--57.3% SHARES VALUE
------ -----
AEROSPACE--1.5%
The Boeing Company ............................. 1,300 $ 106,763
Sundstrand Corp. ............................... 2,100 77,175
-----------
183,938
-----------
ALUMINUM--.5%
Aluminum Co. of America ........................ 500 31,187
Reynolds Metals Co. ............................ 600 32,250
-----------
63,437
-----------
APPAREL--.7%
Tommy Hilfiger Corporation* .................... 1,800 81,900
-----------
BIO-TECHNOLOGY--2.6%
Amgen Inc.* .................................... 1,100 63,250
Biochem Pharma Inc.* ........................... 4,300 195,650
Liposome Company Inc.* ......................... 2,400 58,800
-----------
317,700
-----------
BUILDING AND
CONSTRUCTION--.8%
Clayton Homes, Inc. ............................ 5,125 94,813
-----------
CHEMICALS--.4%
Monsanto Co. ................................... 300 45,450
-----------
COMMUNICATIONS--5.0%
America Online Inc.* ........................... 1,400 89,600
Glenayre Technologies Inc.* .................... 3,037 141,221
LCI International, Inc.* ....................... 1,500 39,000
Tellabs, Inc. * ................................ 1,800 99,450
U.S. Robotics Corp* ............................ 700 109,550
WorldCom, Inc.* ................................ 2,700 126,900
-----------
605,721
-----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--6.3%
Bay Networks Inc.* ............................. 3,250 102,375
Cabletron Systems, Inc.* ....................... 500 37,688
Cisco Systems, Inc.* ........................... 4,600 238,625
Digital Equipment Corporation* ................. 1,500 89,625
Seagate Technology* ............................ 2,000 116,000
3 Com Corp.* ................................... 4,100 189,112
-----------
773,425
-----------
COMPUTER SOFTWARE--1.6%
Informix Corporation* .......................... 4,700 123,962
Softkey International Inc.* .................... 2,600 72,800
-----------
196,762
-----------
COMPUTER TECHNOLOGY--.7%
Adaptec, Inc.* ................................. 1,600 92,000
-----------
CONSUMER PRODUCTS--.4%
Colgate Palmolive Co. .......................... 700 53,638
-----------
DEFENSE--2.1%
Lockheed Martin Corp. .......................... 652 52,567
McDonnell Douglas Corporation .................. 2,100 202,650
-----------
255,217
-----------
FINANCIAL SERVICES--7.5%
Chase Manhattan Corp. .......................... 2,700 185,963
First Data Corporation ......................... 2,968 225,567
Green Tree Financial Corp. ..................... 4,100 138,375
MBNA Corp. ..................................... 3,900 110,662
Merrill Lynch & Co., Inc. ...................... 1,200 72,450
Money Store, Inc. .............................. 6,000 151,500
Schwab (Charles) Corporation (The) ............. 1,500 36,750
-----------
921,267
-----------
HEALTHCARE--5.5%
Boston Scientific Corporation* ................. 1,200 51,750
Columbia/HCA Healthcare Corporation ............ 4,000 212,500
Guidant Corp. .................................. 1,400 78,575
Johnson & Johnson .............................. 338 31,265
Lilly (Eli) Co. ................................ 1,700 100,300
Merck & Co., Inc. .............................. 1,600 96,800
Smithkline Beecham PLC ADS ..................... 2,000 108,000
-----------
679,190
-----------
HEALTH MAINTENANCE
ORGANIZATIONS--3.2%
Healthsource, Inc.* ............................ 4,000 136,500
Oxford Health Plans, Inc.* ..................... 3,400 171,700
United Healthcare Corporation .................. 1,500 87,750
-----------
395,950
-----------
INSURANCE--2.8%
American International Group, Inc. ............. 2,000 182,750
Travelers Group Inc. ........................... 2,500 153,750
-----------
336,500
-----------
LEISURE &
ENTERTAINMENT--1.8%
Caribiner International Inc.* .................. 2,000 57,000
Mirage Resorts, Incorporated* .................. 3,000 157,125
-----------
214,125
-----------
MACHINERY--.5%
Case Corp. ..................................... 1,300 65,650
-----------
MEDICAL SERVICES--.7%
Medtronic, Inc, ................................ 500 26,563
Omnicare, Inc. ................................. 1,000 60,000
-----------
86,563
-----------
PHARMACEUTICALS--.6%
Pfizer Inc. .................................... 1,000 68,875
-----------
RESTAURANTS &
LODGING--2.4%
Lone Star Steakhouse & Saloon, Inc.* ........... 5,300 219,288
Outback Steakhouse, Inc.* ...................... 2,000 80,250
-----------
299,538
-----------
RETAILING--4.1%
The Gap, Inc. .................................. 4,200 126,525
General Nutrition Companies, Inc.* ............. 4,000 78,000
Gucci Group N.V.* .............................. 2,000 108,750
OfficeMax, Inc.* ............................... 7,250 190,312
-----------
503,587
------------
<PAGE>
THE ALGER FUND -11-
ALGER BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1996
COMMON STOCKS--(CONT.) SHARES VALUE
------ -----
SEMI-CONDUCTORS--3.8%
Altera Corporation* ............................ 2,200 $ 116,050
Maxim Integrated Products, Inc.* .............. 3,500 119,875
Microchip Technology Incorporated* ............. 2,000 51,000
Xilinx, Inc. * ................................. 4,900 180,688
-----------
467,613
-----------
MISCELLANEOUS--1.8%
Loewen Group Inc. .............................. 1,300 38,837
Service Corporation International .............. 3,500 185,938
-----------
224,775
-----------
Total Common Stock (Cost $5,841,227) ........... 7,027,634
-----------
PRINCIPAL
CORPORATE BONDS--7.4% .......................... AMOUNT
-----------
AUTOMOTIVE--2.8%
Ford Motor Credit Corp.,
9.50%, 6/1/10 ................................ $ 300,000 348,390
-----------
BROKERAGE--.8%
Merrill Lynch & Co., Inc.,
6.375%, 9/8/06 ............................... 100,000 91,642
-----------
MANUFACTURING--2.4%
Allied Signal Inc.,
6.75%, 8/15/00 ............................... 300,000 299,850
-----------
UTILITIES--1.4%
Pacific Gas & Electric Co.
7.25%, 3/1/26 ................................ 182,000 166,005
-----------
Total Corporate Bonds
(Cost $960,807) .............................. 905,887
-----------
U.S. Government and Agency
Obligations--19.5%
U.S. Treasury Notes,
5.75%, 9/30/97 ............................... 250,000 249,452
U.S. Treasury Notes,
7.50%, 10/31/99 .............................. 100,000 103,625
U.S. Treasury Notes,
6.375%, 1/15/00 .............................. 100,000 100,140
U.S. Treasury Notes,
7.50%, 5/15/02 ............................... 100,000 104,953
U.S. Treasury Notes,
6.25%, 2/15/03 ............................... 250,000 245,585
U.S. Treasury Notes,
6.50%, 8/15/05................................ 300,000 295,782
U.S. Treasury Bonds,
7.625%, 11/15/22 ............................. 100,000 106,375
Federal Farm Credit Bank Corp.,
4.95%, 3/3/97 ................................ 250,000 246,368
Federal Home Loan Bank Corp.,
6.683%, 10/16/00 ............................. 250,000 247,853
Federal Home Loan Mortgage Corp.,
6.50%, 6/10/03 ............................... 150,000 143,672
Federal Home Loan Mortgage Corp.,
8.20%, 1/16/98 ............................... 100,000 101,797
Federal National Mortgage Assoc.,
7.39%, 7/15/99 ............................... 100,000 100,281
Federal National Mortgage Assoc.,
8.50%, 02/1/05 ............................... 100,000 104,531
Federal National Mortgage Assoc.,
7.11%, 04/16/01 .............................. 250,000 249,735
-----------
Total U.S. Government
& Agency Obligations
(Cost $2,427,879) ............................ 2,400,149
-----------
Short-Term Corporate Notes--11.4%
Ameritech Corp.,
5.22%, 5/7/96 ................................ 150,000 149,870
Dynamic Funding Corp.,
5.35%, 5/7/96 ................................ 300,000 299,733
Pepsico Inc.,
5.25%, 5/8/96 ................................ 600,000 599,388
Philip Morris Cos. Inc.,
5.20%, 5/7/96 ................................ 350,000 349,695
-----------
Total Short-Term Corporate Notes
(Cost $1,398,686) ............................ 1,398,686
-----------
Short-Term U.S. Government
Obligations--2.3%
U.S. Treasury Bill, 5.29%, 10/17/96
(Cost $273,047) .............................. 280,000 281,128
-----------
Total Investments
(Cost $10,901,646)(a) ........................ 97.9% 12,013,484
Other Assets in Excess of Liabilities .......... 2.1 254,095
----- -----------
Net Assets ..................................... 100.0% $12,267,579
===== ===========
*Non-income producing security.
(a)At April 30, 1996, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $10,901,646, amounted to $1,111,838
which consisted of aggregate gross unrealized appreciation of $1,353,457 and
aggregate gross unrealized depreciation of $241,619.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -12-
ALGER BALANCED PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
FROM JUNE 1, 1992
SIX MONTHS YEAR ENDED OCTOBER 31, (COMMENCEMENT OF
ENDED ---------------------------------- OPERATIONS)
APRIL 30, 1996(I)(IV) 1995 1994 1993 TO OCTOBER 31, 1992(IV)
--------------------- ----- ----- ----- ----------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of period......................... $ 13.59 $ 10.65 $ 11.18 $ 9.95 $ 10.00
-------- -------- -------- ------- --------
Net investment income (loss)......... .08 (.02)(ii) (.05) (.01) (.12)
Net realized and unrealized
gain (loss) on investments........ .69 2.96 (.39) 1.24 .07
-------- -------- -------- ------- --------
Total from investment
operations........................ .77 2.94 (.44) 1.23 (.05)
-------- -------- -------- ------- --------
Dividends from net investment
Income............................ (.01) -- -- -- --
Distributions from net realized
gains............................. (.21) -- (.09) -- --
-------- -------- -------- ------- --------
Total Distributions.................. (.22) -- (.09) -- --
-------- -------- -------- ------- --------
Net asset value, end of period....... $ 14.14 $ 13.59 $ 10.65 $ 11.18 $ 9.95
======== ======== ======== ======== ========
Total Return (iii)................... 5.7% 27.6% (4.0%) 12.4% (0.5%)
======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)................. $ 12,268 $ 6,214 $ 3,073 $ 3,125 $ 1,370
======== ======== ======== ======== ========
Ratio of expenses to average
net assets...................... 2.64%(v) 3.34%(v) 3.18% 3.82% 5.62%
======== ======== ======== ======== ========
Decrease reflected in above
expense ratios due to expense
reimbursements--Note 3(a)........ -- .24% -- .75% 75%
======== ======== ======== ======== ========
Ratio of net investment income
(loss) to average net assets.... .47% (.13%) (.41%) (.97%) (3.07%)
======== ======== ======== ======== ========
Portfolio Turnover Rate............ 47.04% 84.06% 84.88% 115.17% 17.07%
======== ======== ======== ======== ========
Average Commission
Rate Paid....................... $ .0725
=======
</TABLE>
(i) Unaudited.
(ii) Amount was computed based on average shares outstanding during the period.
(iii)Does not reflect contingent deferred sales charge.
(iv) Ratios have been annualized; total return has not been annualized.
(v) Reflects total expenses, including fees offset by earnings credits. The
expense ratio net of earnings credits would have been 2.60% for the six
months ended April 30, 1996 and 3.25% for the year ended October 31, 1995.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -13-
ALGER MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1996
COMMON STOCKS--87.1% SHARES VALUE
------ -----
AEROSPACE--1.3%
Sundstrand Corp. ............................... 34,200 $ 1,256,850
-----------
ALUMINUM--.7%
Reynolds Metals Co. ............................ 12,100 650,375
-----------
APPAREL--1.7%
Gymboree Corp.* ................................ 20,000 517,500
Tommy Hilfiger Corporation* .................... 25,000 1,137,500
-----------
1,655,000
-----------
BIO-TECHNOLOGY--4.2%
Biochem Pharma Inc.* ........................... 61,000 2,775,500
Centocor, Inc.* ................................ 22,700 908,000
Liposome Company Inc.* ......................... 18,000 441,000
-----------
4,124,500
-----------
BUILDING &
CONSTRUCTION--1.3%
Clayton Homes, Inc. ............................ 70,250 1,299,625
-----------
COMMUNICATIONS--11.7%
America Online Inc.* ........................... 16,000 1,024,000
Ascend Communications, Inc.* ................... 28,000 1,722,000
Cascade Communications, Corp.* ................. 4,900 491,225
CompuServe Corp.* .............................. 16,000 456,000
Evergreen Media Corp. Cl. A.* .................. 11,100 435,675
Glenayre Technologies Inc.* .................... 41,725 1,940,213
LCI International Inc.* ........................ 18,000 468,000
Tellabs, Inc.* ................................. 21,500 1,187,875
U.S. Robotics Corp.* ........................... 8,900 1,392,850
WorldCom Inc.* ................................. 47,700 2,241,900
-----------
11,359,738
-----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--6.5%
Bay Networks Inc.* ............................. 33,600 1,058,400
Digital Equipment Corporation* ................. 26,000 1,553,500
Seagate Technology* ............................ 24,500 1,421,000
3 Com Corp.* ................................... 50,600 2,333,925
-----------
6,366,825
-----------
COMPUTER SOFTWARE--3.4%
Compuware Corp.* ............................... 32,800 934,800
Informix Corporation* .......................... 55,400 1,461,175
Softkey International Inc.* .................... 33,400 935,200
-----------
3,331,175
-----------
COMPUTER TECHNOLOGY--1.1%
Adaptec, Inc.* ................................. 19,500 1,121,250
-----------
CONSUMER PRODUCTS--1.4%
CUC International Inc.* ........................ 29,000 953,375
Oakley, Inc.* .................................. 11,000 506,000
-----------
1,459,375
-----------
FINANCIAL SERVICES--7.6%
Advanta Corp., Class B ......................... 7,250 363,406
First Data Corporation ......................... 19,644 1,492,944
Green Tree Financial Corp. ..................... 37,000 1,248,750
MBNA Corp. ..................................... 62,550 1,774,856
Money Store, Inc. .............................. 90,500 2,285,125
Schwab (Charles) Corporation (The) ............. 10,900 267,050
-----------
7,432,131
-----------
HEALTHCARE--1.9%
Boston Scientific Corporation* ................. 20,000 862,500
Guidant Corp. .................................. 17,000 954,125
-----------
1,816,625
-----------
HEALTH MAINTENANCE
ORGANIZATIONS--6.5%
Healthsource, Inc.* ............................ 69,600 2,375,100
Oxford Health Plans, Inc.* ..................... 57,000 2,878,500
United Healthcare Corporation .................. 18,700 1,093,950
-----------
6,347,550
-----------
LEISURE &
ENTERTAINMENT--.5%
Mirage Resorts, Incorporated* .................. 9,200 481,850
-----------
MACHINERY--1.1%
Case Corp. ..................................... 20,000 1,010,000
-----------
MEDICAL DEVICES--2.0%
Fuisz Technologies Ltd.* ....................... 20,000 510,000
Heartport, Inc.* ............................... 12,700 454,025
VISX, Inc.* .................................... 28,900 989,825
-----------
1,953,850
-----------
MEDICAL SERVICES--2.9%
American Oncology Resources, Inc.* ............. 26,500 1,265,375
Cardinal Health, Inc. .......................... 2,000 125,500
PhyCor Inc.* ................................... 15,000 738,750
Transition Systems Inc.* ....................... 30,000 727,500
-----------
2,857,125
-----------
PAPER PACKAGING &
FOREST PRODUCTS--.9%
Sealed Air Corp.* .............................. 23,500 831,312
-----------
<PAGE>
THE ALGER FUND -14-
ALGER MIDCAP GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1996
COMMON STOCKS--(CONT.) SHARES VALUE
------ -----
POLLUTION CONTROL--3.1%
United Waste Systems, Inc.* .................... 25,000 $ 1,375,000
USA Waste Service, Inc.* ....................... 65,200 1,695,200
-----------
3,070,200
-----------
RESTAURANTS &
LODGING--6.4%
Boston Chicken, Inc.* .......................... 57,200 1,830,400
Lone Star Steakhouse & Saloon, Inc.* ........... 69,300 2,867,288
Outback Steakhouse, Inc.* ...................... 38,500 1,544,813
-----------
6,242,501
-----------
RETAILING--9.8%
Cintas Corp. ................................... 13,200 709,500
The Gap, Inc. .................................. 50,000 1,506,250
General Nutrition Companies, Inc.* ............. 81,800 1,595,100
Gucci Group N.V.* .............................. 26,500 1,440,938
Nordstrom, Inc. ................................ 10,000 508,750
OfficeMax, Inc.*.................103,500 ....... . 2,716,875
Viking Office Products, Inc.* .................. 18,200 1,080,625
-----------
9,558,038
-----------
SEMI-CONDUCTORS--8.1%
Altera Corporation* ............................ 38,400 2,025,600
Linear Technology Corporation .................. 29,900 1,027,812
Maxim Integrated Products, Inc.*. .............. 42,300 1,448,775
Microchip Technology Incorporated* ............. 30,000 765,000
Xilinx, Inc.* .................................. 70,400 2,596,000
-----------
7,863,187
-----------
MISCELLANEOUS--3.0%
Loewen Group Inc. .............................. 14,000 418,250
Service Corporation International .............. 46,600 2,475,625
-----------
2,893,875
-----------
Total Common Stocks
(Cost $69,046,002) ........................... 84,982,957
-----------
SHORT-TERM CORPORATE ........................... PRINCIPAL
NOTES--12.5% ................................. AMOUNT VALUE
---------- -----
Ameritech Corp.,
5.22%, 5/7/96 ................................ $1,000,000 $ 999,130
Bridgestone/Firestone, Inc.,
5.35%, 5/2/96 ................................ 749,000 748,889
Dynamic Funding Corp.,
5.35%, 5/7/96 ................................ 1,000,000 999,109
Lucent Technologies, Inc.,
5.27%, 5/9/96 ................................ 500,000 499,414
Merrill Lynch & Co.,
5.30%-5.31%, 5/2/96-5/9/96 ................... 2,051,000 2,049,050
Pepsico Inc.,
5.25%, 5/8/96 ................................ 2,600,000 2,597,345
Philip Morris Cos. Inc.,
5.20%, 5/7/96 ................................ 4,250,000 4,246,316
-----------
Total Short-Term Corporate Notes
(Cost $12,139,253) ........................... 12,139,253
-----------
Total Investments
(Cost $81,185,255)(a) ........................ 99.6% 97,122,210
Other Assets In Excess
of Liabilities ............................... .4 405,812
----- -----------
Net Assets ..................................... 100.0% $97,528,022
===== ===========
* Non-income producing security.
(a)At April 30, 1996, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $81,185,255, amounted to $15,936,955
which consisted of aggregate gross unrealized appreciation of $17,327,529 and
aggregate gross unrealized depreciation of $1,390,574.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -15-
ALGER MIDCAP GROWTH PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
FROM MAY 24, 1993
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED OCTOBER 31, OPERATIONS)
APRIL 30, 1996(I)(II) 1995 1994 TO OCTOBER 31, 1993(II)
--------------------- -------- --------- ------------------------
<S>
Net asset value, beginning
<C> <C> <C> <C>
of period......................... $ 18.94 $ 12.77 $ 12.48 $ 10.00
-------- ------- -------- -------
Net investment income (loss)......... (.14)(v) (.08) (.11) (.09)
Net realized and unrealized
gain (loss) on investments........ 1.85 6.25 .68 2.57
-------- -------- -------- -------
Total from investment
operations........................ 1.71 6.17 .57 2.48
Distributions from net realized
gains............................. (1.17) -- (.28) --
-------- -------- -------- -------
Net asset value, end of period....... $ 19.48 $ 18.94 $ 12.77 $ 12.48
======== ======== ======== =======
Total Return (iii)................... 9.9% 48.3% 4.7% 24.8%
======== ======== ======== =======
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)................. $ 97,528 $ 54,016 $ 18,516 $ 3,836
======== ======== ======== =======
Ratio of expenses to average
net assets...................... 2.32%(iv) 2.39% (iv) 3.20% 3.73%
======== ======== ======== =======
Decrease reflected in above
expense ratio due to expense
reimbursements--Note 3(a)........ -- -- .07% .80%
======== ======== ======== =======
Ratio of net investment income
(loss) to average net assets.... (1.57%) (1.71%) (2.32%) (2.86%)
======== ======== ======== =======
Portfolio Turnover Rate............ 61.58% 121.60% 127.40% 57.64%
======== ======== ======== =======
Average Commission
Rate Paid....................... $ .0716
=======
</TABLE>
(i) Unaudited.
(ii) Ratios have been annualized; total return has not been annualized.
(iii)Does not reflect contingent deferred sales charge.
(iv) Reflects total expenses, including fees offset by earnings credits. The
expense ratio net of earnings credits would have been 2.30% for the six
months ended April 30, 1996 and 2.34% for the year ended October 31, 1995.
(v) Amount was computed based on average shares outstanding during the period.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -16-
ALGER CAPITAL APPRECIATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1996
COMMON STOCKS--91.6% SHARES VALUE
------ -----
AEROSPACE--.7%
The Boeing Company ............................. 10,100 $ 829,463
-----------
ALUMINUM--1.5%
Aluminum Co. of America ........................ 14,500 904,438
Reynolds Metals Co. ............................ 15,000 806,250
-----------
1,710,688
-----------
APPAREL--.9%
Nautica Enterprises Inc.* ...................... 7,000 325,500
Tommy Hilfiger Corporation* .................... 16,000 728,000
-----------
1,053,500
-----------
BIO-TECHNOLOGY--6.4%
Amgen Inc.* .................................... 15,000 862,500
Biochem Pharma Inc.* ........................... 49,600 2,256,800
CellPro Incorporated* .......................... 50,000 812,500
Centocor, Inc.* ................................ 9,400 376,000
Cygnus Inc.* ................................... 25,000 534,375
Cytotherapeutics, Inc.* ........................ 39,600 584,100
Ergo Science Corp.* ............................ 25,000 518,750
Gliatech Inc.* ................................. 10,000 133,750
Guilford Pharmaceuticals Inc.* ................. 17,500 446,250
Liposome Company Inc.* ......................... 10,000 245,000
Sepracor Inc.* ................................. 34,000 476,000
-----------
7,246,025
-----------
CHEMICALS--.8%
Monsanto Co. ................................... 5,500 833,250
-----------
COMMUNICATIONS--11.2%
America Online Inc.* ........................... 23,000 1,472,000
Ascend Communications, Inc.* ................... 35,300 2,170,950
Cascade Communications Corp.* .................. 5,400 541,350
Chancellor Broadcasting Co. ....................
Class A* ..................................... 50,000 1,275,000
Glenayre Technologies Inc.* .................... 55,450 2,578,425
LCI International Inc.* ........................ 19,000 494,000
Tellabs, Inc.* ................................. 20,000 1,105,000
U.S. Robotics Corp.* ........................... 10,000 1,565,000
WorldCom Inc.* ................................. 33,300 1,565,100
-----------
12,766,825
-----------
COMPUTER RELATED &
BUSINESS EQUIPMENT--9.2%
Bay Networks Inc.* ............................. 39,000 1,228,500
Cabletron Systems, Inc.* ....................... 6,000 452,250
Cisco Systems, Inc.* ........................... 40,000 2,075,000
Digital Equipment Corporation* ................. 29,000 1,732,750
Network Appliance, Inc.* ....................... 22,500 720,000
Seagate Technology* ............................ 27,400 1,589,200
Teltrend, Inc.* ................................ 16,000 790,000
3 Com Corp.* ................................... 40,500 1,868,062
-----------
10,455,762
-----------
COMPUTER SERVICES--.7%
HBO & Company .................................. 7,000 831,250
-----------
COMPUTER SOFTWARE--5.9%
Electronics For Imaging Inc.* .................. 8,000 488,000
EPIC Design Technology, Inc.* .................. 19,000 650,750
Inference Corp. Cl. A* ......................... 57,000 1,033,125
Informix Corporation* .......................... 62,500 1,648,437
Objective Systems Integrators* ................. 15,500 689,750
PeopleSoft Inc.* ............................... 18,300 1,152,900
Softkey International Inc.* .................... 38,300 1,072,400
-----------
6,735,362
-----------
COMPUTER TECHNOLOGY--3.4%
Adaptec, Inc.* ................................. 17,400 1,000,500
C.P. Clare Corporation* ........................ 33,000 697,125
Citrix Systems, Inc.* .......................... 17,500 1,365,000
Kurzweil Applied Intelligence Inc.* ............ 144 621
Security Dynamics Technologies* ................ 10,000 845,000
-----------
3,908,246
-----------
CONSUMER PRODUCTS--1.1%
Colgate Palmolive Co. .......................... 9,500 727,938
Oakley, Inc.* .................................. 12,000 552,000
-----------
1,279,938
-----------
FINANCIAL SERVICES--6.2%
AMRESCO Inc. ................................... 20,000 342,500
Chase Manhattan Corp. .......................... 31,000 2,135,125
First Data Corporation ......................... 29,600 2,249,600
Green Tree Financial Corp. ..................... 11,000 371,250
Money Store, Inc. .............................. 57,200 1,444,300
RAC Financial Group, Inc.* ..................... 15,000 463,125
-----------
7,005,900
-----------
HEALTHCARE--6.7%
ArthroCare Corporation* ........................ 19,000 479,750
Guidant Corp. .................................. 20,900 1,173,013
Impath Inc.* ................................... 20,000 350,000
Integra LifeSciences Corp.* .................... 32,000 408,000
Lilly (Eli) Co. ................................ 7,600 448,400
Lunar Corp.* ................................... 14,500 612,625
Merck & Co., Inc. .............................. 15,000 907,500
NCS Healthcare, Inc. Class A.* ................. 40,000 1,340,000
Orthologic Corp.* .............................. 5,000 174,375
Pharmaceutical Product
Development Corp.* ........................... 15,200 642,200
Smithkline Beecham PLC ADS ..................... 20,000 1,080,000
-----------
7,615,863
-----------
<PAGE>
THE ALGER FUND -17-
ALGER CAPITAL APPRECIATION PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
April 30, 1996
COMMON STOCKS--(CONT.) SHARES VALUE
------ -----
HEALTH MAINTENANCE
ORGANIZATIONS--5.5%
Healthsource, Inc.* ............................ 55,600 $ 1,897,350
Oxford Health Plans, Inc.* ..................... 50,000 2,525,000
United Healthcare Corporation .................. 31,000 1,813,500
-----------
6,235,850
-----------
INSURANCE--2.5%
American International Group, Inc. ............. 15,700 1,434,587
Travelers Group Inc. ........................... 23,000 1,414,500
-----------
2,849,087
-----------
LEISURE &
ENTERTAINMENT--.9%
Mirage Resorts Incorporated* ................... 20,000 1,047,500
-----------
MACHINERY--.7%
Case Corp. ..................................... 16,500 833,250
-----------
MEDICAL DEVICES--9.6%
Arterial Vascular Engineering Corp.* ........... 22,000 968,000
Conceptus, Inc.* ............................... 50,000 987,500
ESC Medical Systems Ltd.* ...................... 30,000 1,320,000
Heartport, Inc.* ............................... 40,000 1,430,000
Hologic, Inc.* ................................. 65,500 1,932,250
IDEXX Laboratories Inc.* ....................... 15,000 667,500
Intercardia, Inc.* ............................. 18,500 416,250
Neuromedical Systems, Inc.* .................... 77,000 1,684,375
Target Therapeutics, Inc.* ..................... 20,000 1,085,000
VISX Inc.* ..................................... 14,000 479,500
-----------
10,970,375
-----------
MEDICAL SERVICES--1.8%
American Onocology Resources, Inc.* ............ 20,000 955,000
PhyCor Inc.* ................................... 23,000 1,132,750
-----------
2,087,750
-----------
PHARMACEUTICALS--.8%
Pfizer Inc. .................................... 13,200 909,150
-----------
POLLUTION CONTROL--.9%
USA Waste Service, Inc.* ....................... 40,000 1,040,000
-----------
RESTAURANTS & LODGING--1.1%
Lone Star Steakhouse &
Saloon, Inc.* ................................ 30,300 1,253,663
-----------
RETAILING--5.1%
The Gap, Inc. .................................. 50,000 1,506,250
General Nutrition Companies, Inc.* ............. 37,000 721,500
Gucci Group N.V.* .............................. 28,500 1,549,688
Mossimo, Inc.* ................................. 10,000 380,000
OfficeMax, Inc.* ............................... 28,300 742,875
Viking Office Products, Inc.* .................. 15,000 890,625
-----------
5,790,938
-----------
SEMI-CONDUCTORS--6.6%
Altera Corporation* ............................ 19,600 1,033,900
Linear Technology Corporation .................. 17,500 601,562
Maxim Integrated Products, Inc.* ............... 32,000 1,096,000
Microchip Technology Incorporated* ............. 17,400 443,700
Xilinx, Inc.* .................................. 70,000 2,581,250
Xylan Corporation* ............................. 28,000 1,793,763
-----------
7,550,175
-----------
MISCELLANEOUS--1.4%
Service Corporation International .............. 31,000 1,646,875
-----------
Total Common Stocks
(Cost $90,481,480) ........................... 104,486,685
-----------
SHORT-TERM CORPORATE PRINCIPAL
NOTES--7.0% AMOUNT
---------
Ameritech Corp.,
5.22%, 5/7/96 ................................ $1,600,000 1,598,608
Bridgestone/Firestone, Inc.,
5.35%, 5/2/96 ................................ 700,000 699,896
Dynamic Funding, Corp.,
5.35%, 5/7/96 ................................ 3,700,000 3,696,701
Lucent Technologies, Inc.,
5.27%, 5/9/96 ................................ 150,000 149,825
Merrill Lynch & Co.,
5.30%, 5/9/96 ................................ 100,000 99,881
Pepisco Inc.,
5.25%, 5/8/96 ................................ 1,700,000 1,698,265
-----------
Total Short-Term Investments
(Cost $7,943,176) ............................ 7,943,176
-----------
Total Investments
(Cost $98,424,656)(a) ........................ 98.6% 112,429,861
Other Assets in
Excess of Liabilities ........................ 1.4 1,568,226
--- -----------
Net Assets ..................................... 100.0% $113,998,087
===== ============
* Non-income producing security.
(a)At April 30, 1996, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $98,424,656 amounted to $14,005,205
which consisted of aggregate gross unrealized appreciation of $16,514,941 and
aggregate gross unrealized depreciation of $2,509,736.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -18-
ALGER CAPITAL APPRECIATION PORTFOLIO (i)
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
Six Months
Ended Year Ended October 31,
---------------------------------
April 30, 1996(ii) 1995 1994
--------------- --------------- ---------------
<S> <C> <C> <C>
Net asset value, beginning of period ................. $ 18.62 $ 11.11 $ 10.00
------------ ------------ ------------
Net investment income (loss) ......................... (.19)(iii) (0.47)(iii) (0.47)
Net realized and unrealized gain (loss) on investments 4.33 7.98 1.58
------------ ------------ ------------
Total from investment operations ..................... 4.14 7.51 1.11
Distributions from net realized gains ................ (.54) -- --
------------ ------------ ------------
Net asset value, end of period ....................... $ 22.22 $ 18.62 $ 11.11
============ ============ ============
Total Return (iv) .................................... 22.8% 67.6% 11.1%
============ ============ ============
Ratios and Supplemental Data:
Net assets, end of period (000's omitted) ...... $ 113,998 $ 33,640 $ 2,369
============ ============ ============
Ratio of expenses excluding interest to
average net assets ........................... 2.52% 3.26% 4.13%
============ ============ ============
Ratio of expenses including interest to
average net assets ........................... 2.54%(v) 3.54%(v) 5.53%
============ ============ ============
Decrease reflected in above expense ratios
due to expense reimbursements--Note 3(a) ..... -- -- 0.85%
============ ============ ============
Ratio of net investment income (loss) to
average net assets ........................... (1.93%) (3.02%) (5.12%)
============ ============ ============
Portfolio Turnover Rate ........................ 99.77% 197.65% 231.99%
============ ============ ============
Average Commission Rate Paid ................... $ .0664
============
Debt outstanding at end of period .............. -- -- $ 651,000
============ ============ ============
Average amount of debt outstanding during
the period ................................... $ 121,154 $ 293,153 $ 406,864
============ ============ ============
Average daily number of shares outstanding
during the period ............................ $ 3,297,203 543,270 191,676
============ ============ ============
Average amount of debt per share during
the period ................................... $ 0.04 $ 0.54 $ 2.12
============ ============ ============
</TABLE>
(i) Prior to March 27, 1995, the Alger Capital Appreciation Portfolio was the
Alger Leveraged AllCap Portfolio.
(ii) Unaudited. Ratios have been annualized; total return has not been
annualized.
(iii)Amount was computed based on average shares outstanding during the period.
(iv) Does not reflect contingent deferred sales charge.
(v) Reflects total expenses, including fees offset by earnings credits. The
expense ratio net of earnings credits would have been 2.50% for the six
months ended April 30, 1996 and 3.43% for the year ended October 31, 1995.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -19-
ALGER MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (Unaudited)
April 30, 1996
SHORT-TERM CORPORATE PRINCIPAL
NOTES--90.0% AMOUNT VALUE
--------- -----
AUTOMOBILES--9.2%
American Honda Finance Corp.,
5.35%, 6/24/96 ............................... $ 6,875,000 $ 6,819,828
Ford Motor Credit Corp.,
5.28%, 5/9/96 ................................ 9,000,000 8,989,440
Renault Credit International,
5.30%, 7/31/96 ............................... 7,900,000 7,794,162
-----------
23,603,430
-----------
BANKS--19.0%
Banca CRT Financial Corp.,
5.36%, 7/1/96 ................................ 4,757,000 4,713,796
Bank of America,
5.00%, 6/1/96 ................................ 3,000,000 2,997,831
Bankers Trust New York Corp.,
5.16%, 7/9/96 ................................ 7,400,000 7,326,814
Caisse Centrale Desjardins
Du Quebec,
5.36%, 7/8/96 ................................ 2,000,000 1,979,751
Fidelity Federal Bank FSB.,
5.20-5.30%, 9/27/96-10/1/96 .................. 9,300,000 9,091,019
Korean Development Bank,
5.35%, 5/28/96 ............................... 5,800,000 5,776,727
National Australia Funding (DE) ................ Inc.,
5.22%, 6/14/96 ............................... 9,700,000 9,638,114
Republic New York Corp.,
5.26%, 5/2/96 ................................ 7,500,000 7,498,904
-----------
49,022,956
-----------
BROKERAGE--1.9%
Merrill Lynch & Co., Inc.,
5.31%, 10/3/96 ............................... 5,000,000 4,885,688
-----------
COMMUNICATIONS--.5%
Lucent Technologies Corp.,
5.27%, 5/9/96 ................................ 1,300,000 1,298,478
-----------
COMPUTER TECHNOLOGY--.8%
CSC Enterprises,
5.35%, 7/23/96 ............................... 2,200,000 2,172,864
-----------
ELECTRONICS--8.1%
Hitachi, LTD,
5.25%-5.30%, 7/17/96-10/7/96 ................. 6,100,000 6,017,813
Sanyo Electric Finance (USA) Corp.,
5.22-5.40%, 5/15/96-7/31/96 .................. 8,000,000 7,936,410
Toshiba America Inc.,
5.23%, 7/1/96 ................................ 7,000,000 6,937,966
-----------
20,892,189
-----------
FINANCE--17.9%
First Almerica Co.,
5.30%, 5/23/96 ............................... 8,500,000 8,472,469
Hanson Finance PLC,
5.35%, 6/26/96 ............................... 2,000,000 1,983,356
Industrial Funding Corp.,
5.25%, 7/18/96 ............................... 9,000,000 8,897,625
Oak Funding Corp.,
5.20-5.38%, 5/20/96-7/16/96(a) ............... 5,000,000 4,977,664
Sanwa Business Credit Corp.,
5.35%, 7/23/96 ............................... 10,400,000 10,271,719
Unifunding Inc.,
5.12%, 7/11/96 ............................... 6,800,000 6,731,335
Westpac Capital Corp.,
4.84%, 8/12/96 ............................... 4,800,000 4,733,531
-----------
46,067,699
-----------
IMPORT/EXPORT--1.2%
Export Finance and Insurance Corp.,
5.36%, 7/8/96 ................................ 3,100,000 3,068,614
-----------
INSURANCE--3.1%
Anchor Funding Corp.,
5.30-5.40%, 6/3/96-7/3/96(a) ................. 2,800,000 2,782,723
Great-West Life & Annuity
Insurance Co. (U.S.),
5.33%, 6/6/96 ................................ 5,300,000 5,271,751
-----------
8,054,474
-----------
LEASING--4.4%
Japan Leasing Finance Corp.,
5.40%-5.50%, 7/8/96-7/18/96 .................. 11,325,000 11,199,971
-----------
OIL--4.6%
Fayette Funding Corp.,
5.24-5.38%, 5/16/96-7/10/96 .................. 6,881,000 6,845,986
Shoseki International Corp.,
5.43%, 6/11/96 ............................... 5,000,000 4,969,079
-----------
11,815,065
-----------
REAL ESTATE--.4%
Embarcadero Center Venture,
5.43%, 5/15/96 ............................... 1,000,000 997,888
-----------
RECEIVABLES CO.--6.2%
Dynamic Funding Corp.,
5.35-5.42%, 5/7/96-7/16/96 ................... 6,100,000 6,033,912
Omnibus Funding Corp., Series C,
5.25%, 6/14/96(a) ............................ 10,000,000 9,935,833
-----------
15,969,745
-----------
<PAGE>
THE ALGER FUND -20-
ALGER MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
SHORT-TERM CORPORATE PRINCIPAL
NOTES--(CONT.) AMOUNT VALUE
------ -----
TRADING COMPANY--5.6%
Mitsubishi International Corp.,
5.23%, 6/28/96 ............................... $ 5,700,000 $ 5,651,971
Mitsui & Co., (USA) Inc.,
5.32-5.37%, 7/2/96-8/5/96 .................... 8,878,000 8,772,500
-----------
14,424,471
-----------
UTILITIES--7.1%
France Telecom,
5.30%, 6/18/96 ............................... 9,400,000 9,333,573
Massachusetts Electric Co.,
5.12%, 7/16/96 ............................... 5,000,000 4,945,956
Progress Funding Corp., Ser. A,
5.20%, 9/9/96(a) ............................. 4,200,000 4,120,527
-----------
18,400,056
-----------
Total Short-Term Corporate Notes
(Cost $231,873,588) .......................... 231,873,588
-----------
CERTIFICATES OF DEPOSIT--4.8%
Banco Espirito Santo E Commercial,
5.375-5.4375%, 5/29/96-8/9/96
(Cost $12,500,000) ........................... 12,500,000 12,500,000
------------
U.S. GOVERNMENT SECURITIES--3.1%
Federal Farm Credit Bank,
4.95%, 3/3/97 (Cost $7,989,057) .............. 8,000,000 7,989,057
------------
Total Investments
(Cost $252,362,645)(b) ....................... 97.9% 252,362,645
Other Assets
in Excess of Liabilities ..................... 2.1 5,370,068
----- ------------
Net Assets ..................................... 100.0% $257,732,713
===== ============
(a) Pursuant to Securities and Exchange Commission Rule 144A, these securities
may be sold prior to their maturity, only to qualified institutional buyers.
(b) At April 30, 1996, the cost of investments for federal income tax purposes
was the same as the cost for financial reporting purposes.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -21-
ALGER MONEY MARKET PORTFOLIO
Financial Highlights
For a share outstanding throughout the period
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED --------------------------------------------------------
APRIL 30, 1996(i) 1995 1994 1993 1992 1991
----------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period....................... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
-------- -------- -------- -------- -------- --------
Net investment income.............. .0268 .0573 .0374 .0304 .0424 .0671
Dividends from net
investment income............... (.0268) (.0573) (.0374) (.0304) (.0424) (.0671)
-------- -------- -------- -------- -------- --------
Net asset value, end of period..... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ======== ======== ========
Total Return....................... 2.7% 5.9% 3.8% 3.1% 4.3% 6.9%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data:
Net assets, end of period
(000's omitted)............... $257,733 185,822 $163,170 $126,567 $135,288 $160,898
======== ======== ======== ======== ======== ========
Ratio of expenses to average
net assets.................... .29%(ii) .29%(ii) .27% .41% .25% .18%
======== ======== ======== ======== ======== ========
Decrease reflected in above
expense ratios due to
expense reimbursements
and management fee
waivers-Note 3(a)............. .50% .50% .50% .50% .60% .63%
======== ======== ======== ======== ======== ========
Ratio of net investment
income to average net
assets........................ 5.39% 5.73% 3.78% 3.04% 4.30% 6.76%
======== ======== ======== ======== ======== ========
</TABLE>
(i) Unaudited. Ratios have been annualized; total return has not been
annualized.
(ii) Reflects total expenses, including fees offset by earnings credits. The
expense ratio net of earnings credits would have been 0.28% for the six
months ended April 30, 1996 and 0.27% for the year ended October 31, 1995.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -22-
STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except per share amounts)
(Unaudited) April 30, 1996
<TABLE>
<CAPTION>
SMALL CAPITAL
CAPITAL- MIDCAP APPRE- MONEY
GROWTH IZATION BALANCED GROWTH CIATION MARKET
ASSETS: PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investments in securities, at value
(identified cost*)-see accompany-
ing schedules of investments ......... $235,665 $550,293 $12,013 $97,122 $112,430 $252,363
Cash .................................... 44 -- 42 25 -- 4,884
Receivable for investment
securities sold....................... 1,781 9,392 150 2,875 1,364 --
Receivable for shares of beneficial
interest sold........................ 1,302 1,797 25 879 1,487 405
Dividends and interest
receivable............................ 23 24 54 2 5 149
Prepaid expenses and other assets........ 35 48 24 24 24 57
-------- -------- ------- ------- -------- --------
Total Assets......................... 238,850 561,554 12,308 100,927 115,310 257,858
-------- -------- ------- ------- -------- --------
LIABILITIES:
Payable for investment
securities purchased.................. 1,788 8,331 -- 3,145 1,029 --
Bank overdraft........................... -- 144 -- -- 24 --
Payable for shares of beneficial
interest redeemed..................... 175 181 1 43 20 22
Accrued investment management fees....... 149 395 8 62 74 --
Accrued distribution fees ............... 149 349 8 59 65 --
Accrued shareholder servicing fees....... 50 116 3 20 22 --
Dividends payable-Note 2(c).............. -- -- -- -- -- 20
Accrued expenses......................... 129 208 20 70 78 83
-------- -------- ------- ------- -------- --------
Total Liabilities.................... 2,440 9,724 40 3,399 1,312 125
-------- -------- ------- ------- -------- --------
NET ASSETS ............................. $236,410 $551,830 $12,268 $97,528 $113,998 $257,733
======== ======== ======= ======= ======== ========
Net Assets Consist of:
Paid-in capital....................... $195,420 $346,162 $10,866 $79,523 $96,924 $257,794
Undistributed net investment
income (accumulated loss)........... (3,277) (21,961) (40) (1,362) (995) --
Undistributed net realized
gain (accumulated loss)............. 6,962 61,776 330 3,430 4,064 (61)
Net unrealized appreciation............ 37,305 165,853 1,112 15,937 14,005 --
-------- -------- ------- ------- -------- --------
NET ASSETS .............................. $236,410 $551,830 $12,268 $97,528 $113,998 $257,733
======== ======== ======= ======= ======== ========
Shares of beneficial interest
outstanding-Note 6.................... 25,337 47,227 868 5,006 5,131 257,794
======== ======== ======= ======= ======== ========
NET ASSET VALUE PER SHARE................ $9.33 $11.68 $14.14 $19.48 $22.22 $1.00
======== ======== ======= ======= ======== ========
*Identified cost........................ $198,360 $384,440 $10,901 $81,185 $98,425 $252,363
======== ======== ======= ======= ======== ========
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -23-
STATEMENTS OF OPERATIONS (in thousands) (Unaudited)
For the six months ended April 30, 1996
<TABLE>
<CAPTION>
SMALL CAPITAL
CAPITAL- MIDCAP APPRE- MONEY
GROWTH IZATION BALANCED GROWTH CIATION MARKET
INVESTMENT INCOME: PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- --------- ---------
Income:
<S> <C> <C> <C> <C> <C> <C>
Dividends ............................. $ 532 $ 124 $ 14 $ 42 $ 116 $ --
Interest .............................. 580 719 132 213 69 5,628
------ ------ ------ ------ ------ ------
Total Income........................... 1,112 843 146 255 185 5,628
Expenses:
Management fees-Note 3(a).............. 720 2,136 36 278 274 496
Distribution fees-Note 3(b)............ 720 1,885 36 261 242 --
Shareholder servicing fees-Note 3(f)... 240 628 12 87 81 --
Interest on line of credit utilized-Note 5 -- -- -- -- 5 --
Custodian fees......................... 16 58 5 10 14 14
Transfer agent fees and
expenses-Note 3(e).................. 223 509 17 116 157 219
Professional fees...................... 13 15 9 12 9 9
Trustees' fees......................... 3 3 3 3 3 3
Registration fees...................... 35 40 4 26 23 20
Miscellaneous.......................... 30 73 4 14 11 26
------ ------ ------ ------ ------ ------
2,000 5,347 126 807 819 787
Less, earnings credits-Note 2(e)....... (17) (14) (2) (7) (12) (11)
Less, expense reimbursements and fee
waivers-Note 3(a)................... -- -- -- -- -- (496)
------ ------ ------ ------ ------ ------
Total Expenses......................... 1,983 5,333 124 800 807 280
------ ------ ------ ------ ------ ------
NET INVESTMENT
INCOME (LOSS)......................... (871) (4,490) 22 (545) (622) 5,348
------ ------ ------ ------ ------ ------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments.. 5,769 50,773 325 2,683 3,914 (11)
Net change in unrealized appreciation
on investments......................... 7,996 8,424 257 6,223 12,848 --
------ ------ ------ ------ ------ ------
Net realized and unrealized
gain (loss) on investments............. 13,765 59,197 582 8,906 16,762 (11)
------- ------- ------ ------ ------- ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........... $12,894 $ 54,707 $ 604 $8,361 $16,140 $5,337
======= ======== ====== ====== ======= ======
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -24-
ALGER CAPITAL APPRECIATION PORTFOLIO STATEMENT OF CASH FLOWS (in thousands)
(Unaudited) For the six months ended April 30, 1996
Increase (decrease) in Cash:
Cash flows from operating activities:
Dividends received ............................................ $ 111
Interest received ............................................. 69
Interest paid ................................................. (9)
Operating expenses paid ....................................... (660)
Purchase of investment securities ............................. (120,536)
Purchase of short-term securities, net ........................ (6,395)
Proceeds from disposition of investment securities ............ 64,041
Other ......................................................... (18)
--------
Net cash used in operating activities ..................... (63,397)
--------
Cash flows from financing activities:
Dividends paid .............................................. (1,330)
Proceeds from shares sold and dividends reinvested ............ 85,345
Payments on shares redeemed ................................... (21,337)
--------
Net cash provided by financing activities ................. 62,678
========
Net increase in cash .............................................. (719)
Cash--beginning of period ......................................... 695
--------
Cash--end of period ............................................... $ (24)
========
Reconciliation of net increase in net assets
to net cash used in operating activities:
Net increase in net assets resulting from operations ....... $ 16,140
Increase in investments .................................... (61,281)
Increase in interest and dividends receivable .............. (5)
Increase in receivable for investment securities sold ...... (843)
Decrease in payable for investment securities purchased .... (766)
Net realized gain .......................................... (3,914)
Net increase in unrealized appreciation .................... (12,848)
Increase in accrued expenses ............................... 138
Net increase in other assets ............................... (18)
--------
Net cash provided by operating activities ................ $ (63,397)
========
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -25-
STATEMENTS OF CHANGES IN NET ASSETS (in thousands) (Unaudited)
For the six months ended April 30, 1996
<TABLE>
<CAPTION>
SMALL CAPITAL
CAPITAL- MIDCAP APPRE- MONEY
GROWTH IZATION BALANCED GROWTH CIATION MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO
--------- --------- ---------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss)............ $ (871) $ (4,490) $ 22 $ (545) $ (622) $ 5,348
Net realized gain (loss)
on investments........................ 5,769 50,773 325 2,683 3,914 (11)
Net change in unrealized appreciation
on investments........................ 7,996 8,424 257 6,223 12,848 --
-------- ------- ------- ------- -------- --------
Net increase in net assets
resulting from operations......... 12,894 54,707 604 8,361 16,140 5,337
Dividends to shareholders:
Net investment income.................. -- -- (7) -- -- (5,348)
Net realized gains.................... (10,925) (26,253) (125) (3,809) (1,331) --
Net increase from shares of beneficial
interest transactions-Note 6.......... 80,157 59,658 5,582 38,960 65,549 71,922
-------- ------- ------- ------- -------- --------
Total increase..................... 82,126 88,112 6,054 43,512 80,358 71,911
Net Assets:
Beginning of period................... 154,284 463,718 6,214 54,016 33,640 185,822
-------- ------- ------- ------- -------- --------
End of period.......................... $236,410 $551,830 $12,268 $97,528 $113,998 $257,733
======== ======== ======= ======= ======== ========
Undistributed net investment
income (accumulated loss)............ $ (3,277) $(21,961) $ (40) $(1,362) $ (955) $ --
======== ======== ======= ======= ======== ========
</TABLE>
THE ALGER FUND
STATEMENTS OF CHANGES IN NET ASSETS (in thousands)
For the year ended October 31, 1995
<TABLE>
<CAPTION>
SMALL CAPITAL
CAPITAL- MIDCAP APPRE- MONEY
GROWTH IZATION BALANCED GROWTH CIATION MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss)............ $ (1,047) $ (6,433) $ (5) $ (522) $ (273) $ 9,507
Net realized gain (loss)
on investments........................ 11,826 32,765 215 4,286 1,551 (20)
Net change in unrealized appreciation
on investments........................ 22,002 114,070 644 8,407 826 --
-------- ------- ------- ------- ------- --------
Net increase in net assets resulting
from operations................... 32,781 140,402 854 12,171 2,104 9,487
Dividends to shareholders:
Net investment income.................. -- -- -- -- -- (9,507)
Net realized gains.................... (1,768) (170) -- -- -- --
Net increase from shares of beneficial
interest transactions-Note 6.......... 46,881 28,596 2,287 23,329 29,167 22,672
-------- ------- ------- ------- ------- --------
Total increase..................... 77,894 168,828 3,141 35,500 31,271 22,652
Net Assets:
Beginning of year..................... 76,390 294,890 3,073 18,516 2,369 163,170
-------- ------- ------- ------- ------- --------
End of year............................ $154,284 $463,718 $ 6,214 $54,016 $33,640 $185,822
======== ======== ======= ======= ======= ========
Undistributed net investment
income (accumulated loss)............ $ (2,406) $(17,471) $ (55) $ (817) $ (373) $ --
======== ======== ======= ======= ======= ========
</TABLE>
*Prior to March 27, 1995, the Alger Capital Appreciation Portfolio was the
Alger Leveraged AllCap Portfolio.
See Notes to Financial Statements.
<PAGE>
THE ALGER FUND -26-
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1- General:
The Alger Fund (the "Fund") is a diversified, open-end registered
investment company organized as an unincorporated business trust under the laws
of the Commonwealth of Massachusetts. The Fund operates as a series company
currently issuing six classes of shares of beneficial interest--Growth
Portfolio, Small Capitalization Portfolio, Balanced Portfolio, MidCap Growth
Portfolio, Capital Appreciation Portfolio and Money Market Portfolio (the
"Portfolios"). Prior to March 27, 1995, the Capital Appreciation Portfolio was
known as the Leveraged AllCap Portfolio.
NOTE 2- Significant Accounting Policies:
(a) INVESTMENT VALUATION: Investments of the Portfolios, other than the Money
Market Portfolio, are valued on each day the New York Stock Exchange (the
"NYSE") is open as of the close of the NYSE (currently 4:00 p.m. Eastern time).
Listed and unlisted securities for which such information is regularly reported
are valued at the last reported sales price or, in the absence of reported
sales, at the mean between the bid and asked price or, in the absence of a
recent bid or asked price, the equivalent as obtained from one or more of the
major market makers for the securities to be valued.
Securities for which market quotations are not readily available are valued
at fair value, as determined in good faith pursuant to procedures established by
the Board of Trustees.
The investments of the Money Market Portfolio, and short-term securities
held by the other Portfolios having a remaining maturity of sixty days or less,
are valued at amortized cost which approximates market value.
(b) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income is recognized on the
accrual basis.
(c) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are recorded on
the ex-dividend date.
The Money Market Portfolio declares dividends daily from net investment
income; such dividends are paid monthly. The dividends from net investment
income of the other Portfolios are declared and paid annually.
With respect to all Portfolios, dividends from net realized gains, offset
by any loss carryforward, are declared and paid annually after the end of the
fiscal year in which earned.
(d) FEDERAL INCOME TAXES: It is each Portfolio's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders. To
the extent a Portfolio maintains such compliance, no federal income tax
provision is required. Each Portfolio is treated as a separate entity for the
purpose of determining such compliance. At October 31, 1995, the net capital
loss carryforwards of the Money Market Portfolio which may be used to offset
future net realized gains were approximately $50,000, and expire between 1996
and 2003.
(e) EXPENSES: The Fund accounts separately for the assets, liabilities and
operations of each Portfolio. Expenses directly attributable to each Portfolio
are charged to that Portfolio's operations; expenses which are applicable to all
Portfolios are allocated among them. The Fund's custodian fees have been reduced
as a result of earnings credits received on overnight cash balances. Balances
left on deposit with the custodian preclude their use elsewhere.
(f) OTHER: These financial statements have been prepared using estimates and
assumptions that affect the reported amounts therein. Actual results may differ
from those estimates.
<PAGE>
THE ALGER FUND -27-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 3- Investment Management Fees and Other Transactions with Affiliates:
(a) INVESTMENT MANAGEMENT FEES: Fees incurred by each Portfolio, pursuant to the
provisions of Investment Management Agreements (the "Agreements") with Fred
Alger Management, Inc. ("Alger Management"), are payable monthly and computed
based on the value of the average daily net assets of each Portfolio at the
following annual rates:
Growth Portfolio............................ .75%
Small Capitalization Portfolio.............. .85
Balanced Portfolio.......................... .75
MidCap Growth Portfolio..................... .80
Capital Appreciation Portfolio.............. .85
Money Market Portfolio...................... .50
The Agreements further provide that if in any fiscal year the aggregate
expenses of any Portfolio, excluding interest, taxes, brokerage commissions,
distribution fees and extraorditnary expenses, exceed the expense limitation of
any state securities laws having jurisdiction over a Portfolio, Alger Management
will reimburse that Portfolio for the excess expense to the extent required by
such state laws.
With respect to the Money Market Portfolio, Alger Management undertook to
waive its management fee of $495,837 for the six months ended April 30, 1996.
Alger Management has undertaken to waive its fee through June 30, 1996 at which
time Alger Management may extend this undertaking in whole or in part.
(b) DISTRIBUTION FEES: The Fund has adopted an Amended and Restated Plan of
Distribution pursuant to which each Portfolio, other than the Money Market
Portfolio, has agreed to reimburse Fred Alger & Company, Incorporated, the
Fund's distributor (the "Distributor"), for costs and expenses incurred by the
Distributor in connection with advertising and marketing shares of the Fund's
Portfolios. The distribution fee is not to exceed .75% of the average daily net
assets of each of the designated Portfolios. If in any month, the costs incurred
by the Distributor are in excess of the distribution fees charged to the
Portfolios, the excess may be carried forward, with interest, and sought to be
reimbursed in future periods. As of April 30, 1996, such excess carried forward
was approximately $7,070,000, $14,039,000, $251,000, $1,959,000 and $1,382,000
for the Growth Portfolio, the Small Capitalization Portfolio, the Balanced
Portfolio, the MidCap Growth Portfolio, and the Capital Appreciation Portfolio,
respectively. Contingent deferred sales charges imposed on redemptions will
reduce the amount of distribution expenses for which reimbursement may be
sought. See Note 3(c) below. The Distributor has entered into arrangements with
broker/dealers for the sale of shares of certain of the Fund's Portfolios. In
connection with these arrangements, the Distributor has agreed to pay these
broker/dealers, with respect to the shares sold, from its distribution fee
received from the Portfolios.
(c) CONTINGENT DEFERRED SALES CHARGE: A contingent deferred sales charge is
imposed if an investor redeems an amount which causes the current value of the
investor's account of any Portfolio to fall below the total dollar amount of
investments made during the past six years, except that no sales charge is
imposed on the amount of the investment redeemed which is attributable to
reinvested dividends or capital gain distributions or is derived from increases
in the value of the investor's account above the amount invested during the past
six years. The amount of the charge is 5% of the purchase payment for
redemptions made in the first year. For redemptions made in the second, third,
fourth, fifth and sixth years, the amount of the charge is 4%, 3%, 2%, 2% and
1%, respectively. In addition, no charge is imposed on the redemption of shares
of the Money Market Portfolio, except for redemptions of shares acquired in
exchange for shares of the other Portfolios. Any sales charges imposed on
redemptions are paid to the Distributor. During the six months ended April 30,
1996, such charges amounted to approximately $840,000.
<PAGE>
THE ALGER FUND -28-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(d) BROKERAGE COMMISSIONS: During the six months ended April 30, 1996, the
Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio,
the MidCap Growth Portfolio and the Capital Appreciation Portfolio paid the
Distributor commissions of $198,269, $311,817, $6,921, $70,503 and $80,587,
respectively, in connection with securities transactions.
(e) TRANSFER AGENT FEES: Alger Shareholder Services, Inc. ("Alger Services"), an
affiliate of Alger Management, serves as transfer agent for the Fund. During the
six months ended April 30, 1996, the Growth Portfolio, the Small Capitalization
Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital
Appreciation Portfolio and the Money Market Portfolio incurred fees of $186,100,
$390,780, $13,865, $93,040, $134,980 and $148,560, respectively, for services
provided by Alger Services. In addition, during the six months ended April 30,
1996, the Growth Portfolio, the Small Capitalization Portfolio, the Balanced
Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio and
the Money Market Portfolio reimbursed Alger Services $36,470, $117,720, $3,344,
$23,190, $22,045 and $70,170, respectively, for transfer agent related expenses
paid by Alger Services on behalf of the Portfolios.
(f) SHAREHOLDER SERVICING FEES: The Fund has entered into a shareholder
servicing agreement with the Distributor whereby the Distributor provides each
Portfolio other than the Money Market Portfolio with ongoing servicing of
shareholder accounts. As compensation for such services, each designated
Portfolio pays the Distributor a monthly fee at an annual rate equal to .25% of
the Portfolios' average daily net assets.
(g) OTHER TRANSACTIONS WITH AFFILIATES: Certain trustees and officers of the
Fund are directors and officers of Alger Management, the Distributor and Alger
Services. At April 30, 1996, Alger Management and its affiliates owned 743,347
shares, 770,412 shares, 103,282 shares, 226,117 shares, 102,899 shares and
2,206,404 shares of the Growth Portfolio, the Small Capitalization Portfolio,
the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation
Portfolio and the Money Market Portfolio, respectively.
NOTE 4- Securities Transactions:
The following summarizes the securities transactions by the Fund, other
than short-term securities, for the six months ended April 30, 1996:
PURCHASES SALES
--------- -----
Growth Portfolio......... $ 149,129,719 $ 85,700,455
Small Capitalization
Portfolio.............. 364,336,711 334,014,396
Balanced Portfolio....... 8,689,840 3,841,877
MidCap Growth
Portfolio.............. 67,544,950 39,399,995
Capital Appreciation
Portfolio.............. 119,770,389 64,885,127
NOTE 5- Short-Term Borrowings:
The Capital Appreciation Portfolio has a line of credit with a bank whereby
it may borrow up to 1/3 of its assets, as defined, up to a maximum of
$25,000,000. Such borrowings have a variable interest rate and are payable on
demand. For the six months ended April 30, 1996, the Portfolio had borrowings
which averaged $121,154 at a weighted average interest rate of 8.66%.
<PAGE>
THE ALGER FUND -29-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 6- Share Capital:
The Fund has an unlimited number of authorized shares of beneficial interest of
$.001 par value which were divided into different classes of shares during the
six months ended April 30, 1996. Transactions of shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Alger Growth Portfolio*
Shares sold................. 12,225,658 $110,837,024 14,201,363 $ 76,768,669
Dividends reinvested........ 1,233,917 10,587,010 266,844 1,726,486
------------ ------------ ------------ ------------
13,459,575 121,424,034 14,468,207 78,495,155
Shares redeemed............. (4,563,994) (41,267,323) (1,678,400) (31,613,563)
------------ ------------ ------------ ------------
Net increase................ 8,895,581 $ 80,156,711 12,789,807 $ 46,881,592
============ ============ ============ ============
Alger Small Capitalization Portfolio*
Shares sold................. 26,451,140 $284,995,247 42,344,546 $322,359,498
Dividends reinvested........ 2,431,612 25,264,448 22,836 161,233
------------ ------------ ------------ ------------
28,882,752 310,259,695 42,367,382 322,520,731
Shares redeemed............. (23,330,346) (250,601,028) (13,590,168) (293,925,307)
------------ ------------ ------------ ------------
Net increase................ 5,552,406 $ 59,658,667 28,777,214 $ 28,595,424
============ ============ ============ ============
Alger Balanced Portfolio
Shares sold................. 694,296 $ 9,479,217 274,506 $ 3,523,634
Dividends reinvested........ 9,599 129,105 -- --
------------ ------------ ------------ ------------
703,895 9,608,322 274,506 3,523,634
Shares redeemed............. (293,397) (4,026,371) (105,829) (1,237,116)
------------ ------------ ------------ ------------
Net increase................ 410,498 $ 5,581,951 168,677 $ 2,286,518
============ ============ ============ ============
Alger MidCap Growth Portfolio
Shares sold................. 2,845,584 $ 51,872,684 2,932,971 $ 47,462,566
Dividends reinvested........ 208,813 3,587,405 -- --
------------ ------------ ------------ ------------
3,054,397 55,460,089 2,932,971 47,462,566
Shares redeemed............. (901,369) (16,501,020) (1,530,303) (24,133,228)
------------ ------------ ------------ ------------
Net increase................ 2,153,028 $ 38,959,069 1,402,668 $ 23,329,338
============ ============ ============ ============
Alger Capital Appreciation Portfolio
Shares sold................. 4,312,858 $ 84,740,202 2,155,985 $ 38,975,452
Dividends reinvested........ 69,287 1,293,585 -- --
------------ ------------ ------------ ------------
4,382,145 86,033,787 2,155,985 38,975,452
Shares redeemed............. (1,057,644) (20,484,912) (562,915) (9,808,970)
------------ ------------ ------------ ------------
Net increase................ 3,324,501 $ 65,548,875 1,593,070 $ 29,166,482
============ ============ ============ ============
Alger Money Market Portfolio
Shares sold................. 373,194,760 $373,194,760 354,232,048 $354,232,048
Dividends reinvested........ 5,061,792 5,061,792 9,136,546 9,136,546
------------ ------------ ------------ ------------
378,256,552 378,256,552 363,368,594 363,368,594
Shares redeemed............. (306,333,843) (306,333,843) (340,696,846) (340,696,846)
------------ ------------ ------------ ------------
Net increase................ 71,922,709 $ 71,922,709 22,671,748 $ 22,671,748
============ ============ ============ ============
</TABLE>
*Adjusted to reflect the effect of a 3 for 1 stock split which occurred on
September 27, 1995.
<PAGE>
The Alger Fund
75 Maiden Lane
New York, N.Y. 10038
(800) 992-3863
- --------------------------------------------------------------------------------
Board of Trustees
Fred M. Alger, CHAIRMAN
David D. Alger
Arthur M. Dubow
Stephen E. O'Neil
Nathan E. Saint-Amand
John T. Sargent
- --------------------------------------------------------------------------------
Investment Manager
Fred Alger Management, Inc.
75 Maiden Lane
New York, N.Y. 10038
- --------------------------------------------------------------------------------
Distributor
Fred Alger & Company, Incorporated
30 Montgomery Street
Jersey City, N.J. 07302
- --------------------------------------------------------------------------------
Transfer Agent
Alger Shareholder Services, Inc.
30 Montgomery Street
Jersey City, N.J. 07302
- --------------------------------------------------------------------------------
This report was prepared for distribution to shareholders and to others who may
be interested in current information concerning the Fund. It was not prepared
for use, nor is it circulated in connection with any offer to sell, or
solicitation of any offer to buy, any securities. For details thereof and other
material information, see the Prospectus.
Past performance does not guarantee future results. Investment return and
principal will fluctuate, and the Portfolios' shares, when redeemed, may be
worth more or less than the original cost. Maximum contingent deferred sales
charge is 5% on redemptions during the first year, and declines to 0% after six
years. This communication must be accompanied or preceded by a current Alger
Fund Prospectus.
A496
